Rental Construction Drops Despite Demand

Housing starts edged 0.5% lower for single-family, but plummeted 17% for multi-family development in July

Laura Kusisto

Development of rental apartments is driving the latest construction boom, even in places like Dallas long associated with acres of subdivisions.

But construction of such multifamily units is poised to wind down despite rising demand, raising questions whether single-family home builders will step up to fill the void. Otherwise, construction, a crucial driver of the U.S. economy might simply lose steam.